GBP/USD Price Analysis: Cable upholds throwback support at 1.2760 on BoE decision day

GBP/USD grinds higher past short-term key hurdle ahead of BoE Interest Rate Decision.
100-HMA prods intraday Cable buyers amid pre-BoE anxiety.
200-HMA, fortnight-old support line keep buyers hopeful amid upbeat oscillators.
Strong UK inflation bolsters hawkish BoE bets, markets expected 25 bps rate hike previously.

Anil Panchal FXStreet

GBP/USD remains sidelined around 1.2770 amid early Thursday in Asia, struggling to extend the previous day’s upside break of a short-term key resistance line ahead of the all-important Bank of England (BoE) Interest Rate Decision. In doing so, the Cable pair portrays the pre-BoE anxiety while marking failure to cross the 100-Hour Moving Average but stays on the bull’s radar.

Not only the upside break of a one-week-old descending trend line, now immediate support around 1.27660, but the Pound Sterling’s successful trading beyond the 200-HMA joins the bullish MACD and RSI to also keep the GBP/USD buyers hopeful.

Additionally, the previous day’s strong UK inflation data also underpins the bullish bias about the Cable pair.

That said, a clear upside break of the 100-HMA hurdle surrounding 1.2780 becomes necessary for the GBP/USD pair to refresh the monthly high, currently around 1.2850.

In doing so, the 61.8% Fibonacci Expansion (FE) of its June 12-21 moves, near 1.2910, will be in the spotlight.

On the flip side, the GBP/USD pair’s fall past the resistance-turned-support line of 1.2760 could drag the Pound Sterling towards the 200-HMA support of 1.2695.

Following that, an ascending support line from June 05, close to 1.2655 at the latest, will act as the last defense of the Cable pair buyers.

Also read: BoE Preview: Banks expect 25 bps, door open to further hikes

GBP/USD: Hourly chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2772
Today Daily Change	0.0007
Today Daily Change %	0.05%
Today daily open	1.2765

Trends
Daily SMA20	1.253
Daily SMA50	1.2507
Daily SMA100	1.2333
Daily SMA200	1.2057

Levels
Previous Daily High	1.2807
Previous Daily Low	1.2714
Previous Weekly High	1.2848
Previous Weekly Low	1.2487
Previous Monthly High	1.268
Previous Monthly Low	1.2308
Daily Fibonacci 38.2%	1.2749
Daily Fibonacci 61.8%	1.2771
Daily Pivot Point S1	1.2717
Daily Pivot Point S2	1.2669
Daily Pivot Point S3	1.2624
Daily Pivot Point R1	1.281
Daily Pivot Point R2	1.2855
Daily Pivot Point R3	1.2903

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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